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Tellurian and Shell Sign Agreements for 3 mtpa

7/30/2021

Tellurian - Press release

Tellurian Inc. announced today it has finalized liquefied natural gas (LNG) sale and purchase agreements (SPAs) with
Shell NA LNG. The SPAs are on a free on board (FOB) basis at Driftwood LNG for a
combination of three million tonnes per annum (mtpa) for a ten-year period, indexed to a
combination of two indices: the Japan Korea Marker (JKM) and the Dutch Title Transfer
Facility (TTF), each netted back for transportation charges.

The agreements mark the third deal that Tellurian has finalized in ten weeks, totaling nine
mtpa and nearly all of the capacity of Driftwood LNG’s first two plants.
President and CEO Octávio Simões said, “Tellurian welcomes Shell to the Driftwood project.
Shell manages one of the largest and most diverse portfolios of LNG in the world, and is
leading the industry in delivering CO2e neutral LNG cargoes. Owing to Driftwood’s
integrated project, our ability to accurately measure well to loading arm emissions and
reduce emissions where operationally possible, further enables Shell’s CO2e neutral LNG
offering.”

Steve Hill, EVP Shell Energy stated, “LNG demand is expected to nearly double by 2040.
This deal secures additional competitive volumes for our portfolio by the mid-2020s, enabling
us to continue providing diverse and flexible LNG supply to our customers. We look forward
to working with Tellurian.”

Simões added, “With these SPAs, we have now completed the sales to support the
launching of the first two plants. Tellurian will now focus on financing Driftwood, in order to
give Bechtel notice to proceed with construction in early 2022.”